{"id":897974,"date":"2020-09-17T14:39:21","date_gmt":"2020-09-17T20:39:21","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897974"},"modified":"2020-09-17T14:39:23","modified_gmt":"2020-09-17T20:39:23","slug":"bid-protests-subcontrator-intervenes","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/bid-protests-subcontrator-intervenes\/","title":{"rendered":"Now There\u2019s Something You Don\u2019t See Every Day: A Subcontractor Intervening in a Bid Protest"},"content":{"rendered":"\n<p>Patrick R. Quigley and Aron C. Beezley | <a rel=\"noreferrer noopener\" href=\"https:\/\/www.buildsmartbradley.com\/2020\/09\/now-theres-something-you-dont-see-every-day-a-subcontractor-intervening-in-a-bid-protest\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=64bd3b579f-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-64bd3b579f-78863422\" target=\"_blank\">Buildsmart<\/a><\/p>\n\n\n\n<p>Fans of the classic 1960s cartoon series&nbsp;<em>Rocky and Bullwinkle<\/em>&nbsp;may recall two minor characters, Chauncey and Edgar, who commented on the action by saying something like this: \u201cNow there\u2019s something you don\u2019t see every day, Edgar.\u201d \u201cWhat\u2019s that, Chauncey?\u201d And then Chauncey would tell the joke, such as it was. (It usually wasn\u2019t much.)<\/p>\n\n\n\n<p>The U.S. Court of Federal Claims (COFC), however, has just given us, in all seriousness, one of those something-you-don\u2019t-see-every-day moments by letting a subcontractor intervene in a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/bid-protest-gao-cases\/\" target=\"_blank\" rel=\"noreferrer noopener\">bid protest<\/a> in\u00a0<em>Mitchco International, Inc. v. United States<\/em>. Although the decision probably will apply narrowly because of its unique facts involving the Randolph-Sheppard Act, its rarity merits a closer look, and the reasoning might offer opportunities for resourceful counsel in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Randolph-Sheppard Act Overview<\/strong><\/h2>\n\n\n\n<p>The Randolph-Sheppard Act (RSA), which governs the\u00a0<em>Mitchco<\/em>\u00a0procurement, \u201cestablishes a priority for blind persons represented by state licensing agencies (SLA)\u201d for \u201cthe award of contracts for . . . the operation of cafeterias in federal buildings\u201d (<em>Ga. Bus. Enter. Program-Vocational Rehab. Agency<\/em>). When a federal agency uses the RSA to procure cafeteria operations services from blind vendors, the agency invites the SLA to respond to the solicitation (34 C.F.R. \u00a7\u00a0395.33). If the SLA submits a competitive offer, the procuring agency will contract with the SLA after negotiations, and the SLA will \u201cidentify and assign qualified blind vendors to operate the facilities\u201d (<em>Colo. Dep\u2019t of Human Servs., Div. of Vocational Rehab. v. United States<\/em>).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Background of the Mitchco International Case<\/strong><\/h2>\n\n\n\n<p>Mitchco, the incumbent contractor, recently filed a bid protest at COFC, challenging the award of an Army contract under the RSA to the Kentucky Office of Vocational Rehabilitation (KOVR), a Kentucky state agency, and its teaming partner, Southern Foodservice Management, Inc. The contract is for food services at the Fort Knox dining facilities. The Government Accountability Office already dismissed a protest by Mitchco of that award (<em>Mitchco Int\u2019l, Inc.<\/em>\u00a0). Among other counts, Mitchco alleges possible violations of the Procurement Integrity Act by KOVR and Southern. In an unusual move, Southern moved to intervene in Mitchco\u2019s COFC case.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Does a Party Normally Intervene at the COFC?<\/strong><\/h2>\n\n\n\n<p>The\u00a0Rules of the Court of Federal Claims\u00a0(RCFC) allow for \u201cIntervention of Right\u201d and \u201cPermissive Intervention\u201d (RCFC 24). Intervention of Right applies when the prospective intervenor has an unconditional right under the law or claims an interest in the matter that requires its participation to protect (RCFC 24(a)). Permissive Intervention, on the other hand, applies to parties having only a \u201cconditional right\u201d to intervene under the law or that have \u201ca claim or defense that shares with the main action a common question of law or fact\u201d (RCFC 24(b)). Southern sought to intervene under the second option, Permissive Intervention.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>COFC\u2019s Order on Southern\u2019s Motion to Intervene<\/strong><\/h2>\n\n\n\n<p>Normally in a bid protest, the intervener is the awardee of the contract being challenged. The gist of Southern\u2019s argument, however, was that although the contract awardee was KOVR (the SLA), KOVR had proposed Southern to perform the work with KOVR\u2019s blind vendor, meaning that Southern was not a typical subcontractor. In addition, Southern argued that the complaint in a separate state-level lawsuit was \u201cbrimming with allegations directed at Southern,\u201d including that KOVR and Southern had \u201ccolluded to misappropriate Mitchco\u2019s proprietary and trade secret information about cafeteria services at Fort Knox.\u201d Thus, Southern argued, the COFC complaint was just a repackaged version of the state-level allegations. According to Southern, it was impossible for COFC to resolve the bid protest without addressing \u201cat least some of Mitcho\u2019s allegations against Southern \u2013 which overlap Mitchco\u2019s state court allegations substantially.\u201d<\/p>\n\n\n\n<p>The COFC granted Southern\u2019s motion, stating, in part:<\/p>\n\n\n\n<p>If plaintiff is correct, Southern violated procurement law and committed fraud, in collusion with KOVR, when KOVR was tentatively awarded the contract. Who better and with more at stake to deal with these accusations than Southern?<\/p>\n\n\n\n<p>*&nbsp;&nbsp;&nbsp;&nbsp; *&nbsp;&nbsp;&nbsp;&nbsp; *<\/p>\n\n\n\n<p>Our review is thus limited to the propriety of the federal government\u2019s actions or inactions in awarding this contract, but Southern may be able to shed light on the question by explaining its own conduct in response to the allegations brought by plaintiff. In that sense, Southern has a defense that shares a common question of law and fact with the government\u2019s and KOVR\u2019s defense of the Army\u2019s decision to award to KOVR (and to Southern as the subcontractor).<\/p>\n\n\n\n<p>The COFC was also persuaded by the fact that the contract was awarded under the RSA because, in that case, KOVR was only a nominal awardee as SLA. The real party that stands to win or lose economically is Southern. Thus, Southern has an interest \u201cbeyond that of a normal subcontractor.\u201d Lastly, the COFC found that no other party could adequately represent Southern\u2019s interests.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Takeaways<\/strong><\/h2>\n\n\n\n<p>In any future protests at the COFC where a subcontractor tries to intervene, the opposing parties will probably try to rely on the unique facts of the\u00a0<em>Mitchco<\/em>\u00a0case to oppose the attempt. Nevertheless, it is likely that practitioners who represent subcontractors that want to participate in bid protests will focus on the language in the order, which is already on\u00a0Westlaw, regarding a subcontractor\u2019s ability to protect its interests when it is being accused of wrong-doing in a bid protest. Thus, we can expect to see more of these arguments, perhaps making them something not that unusual at all.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Patrick R. Quigley and Aron C. Beezley | Buildsmart Fans of the classic 1960s cartoon series&nbsp;Rocky and Bullwinkle&nbsp;may recall two minor characters, Chauncey and Edgar, who commented on the action by saying something like this: \u201cNow there\u2019s something you don\u2019t see every day, Edgar.\u201d \u201cWhat\u2019s that, Chauncey?\u201d And then Chauncey would tell the joke, such&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/bid-protests-subcontrator-intervenes\/\">Continue reading <span class=\"screen-reader-text\">Now There\u2019s Something You Don\u2019t See Every Day: A Subcontractor Intervening in a Bid Protest<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,10879],"class_list":["post-897974","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-bid-protests","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Now There\u2019s Something You Don\u2019t See Every Day: A Subcontractor Intervening in a Bid Protest - Advise &amp; 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